What is meant by waiver in contract law?

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In contract law, a waiver refers to a party's voluntary relinquishment of a known right or a benefit that they are entitled to under the terms of the contract. This means that one party consciously decides not to enforce a particular right or term of the contract, often to accommodate the other party or to maintain a good business relationship. Waivers can occur explicitly, through written or verbal agreement, or implicitly, through actions that clearly demonstrate the intention not to enforce a right.

Understanding the concept of waiver is crucial because it can lead to significant changes in the contractual obligations and rights of the parties involved. Once a waiver is made, the party who waived the right generally cannot later assert that right against the other party.

The other options present different legal concepts or situations that do not accurately capture the meaning of waiver. A party's refusal to adhere to contract terms involves a breach rather than a voluntary relinquishment of rights. Accepting an alternative to performance typically describes a modification or renegotiation of contract terms rather than a waiver. Lastly, including a provision for resolving disputes pertains to dispute resolution mechanisms within the contract, which is unrelated to the concept of waiving rights or obligations.

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